Insureds engaged in construction of structures are exposed to special problems involving constantly changing values, special hazards associated with construction activities and the variety of interests involved in such projects. Traditionally, such operations have been handled with the Builders Risk form. Basically, it provides coverage for your interest as well as the interests of others in buildings while under construction. Additional endorsements and extensions are included to ensure that adequate protection is provided.

ALS 67 Form
This specialized form is designed to provide comprehensive coverage for materials, equipment and property as defined in the policy. It differs from traditional Property insurance by covering several additional items for broader perils than are normally found in standard policies. Some of the more important features provided by this form include optional earthquake and flood coverages, protection for property while in transit and protection for property of others. Back to top

ALS 72 Form
This specialized form is designed to provide comprehensive coverage for materials, equipment and property as defined in the policy. It differs from traditional Property insurance by covering several additional types of property for broader coverage that are excluded in standard forms. Some of the more important features provided by this form include optional earthquake and flood coverages, protection for property while in transit and protection for property of others. Back to top

Blanket Form
This endorsement is used to modify the Builders Risk policy to provide coverage on a reporting basis whereby the completed values of new projects are reported in addition to the dates of previously reported projects when completed. Using this form eliminates the need and exposure of reporting new and deleting completed projects individually. Back to top

Bldg. Materials Coverage
This coverage is used to extend the policy to provide protection for equipment, machinery or materials located within 100 feet of the construction site that is intended to become a part of the building. Back to top

Bldg. Materials Theft Coverage
This coverage is used to extend the policy to include coverage for loss resulting from the theft of materials from your job site. This is important since many forms exclude coverage for loss of this kind. Back to top

Building Interiors
This endorsement is used to extend the Builders Risk policy to cover loss caused by damage to the interior of your building from rain, snow, dust or sand. This is needed since your policy excludes losses of this kind except when entering through a ceiling or wall. Back to top

Building Ordinance Coverage
This endorsement is used to extend the Builders Risk policy to cover loss occasioned by enforcement of ordinances or laws. This is necessary since your policy does not currently provide this coverage. Back to top

Cancellation Clause Modified
This endorsement is used to modify the standard cancellation clause in the Builders Risk policy so that the policy is non-cancelable for any reason other than nonpayment of premium. This is important since due to the unique nature of construction projects, placement of coverage for semi-completed buildings can be difficult if your company were to cancel midterm. Back to top

Co-insurance Requirement Deleted
This endorsement is used to eliminate the Completed Value Builders Risk form's coinsurance provision. This is necessary since a project could unexpectedly increase in value by work order changes or other situations, and subject you to an underinsurance penalty in case of loss. Back to top

Collapse Coverage (CP1120)
The Builders Risk policy can be extended to include coverage for collapse due to defective material or methods. This is important since standard Builders Risk forms can exclude coverage for this exposure. Back to top

Completed Value Form (CP0020)
This policy provides protection by providing coverage equal to the estimated value of the completed project. The rate that is charged is roughly 50% of the completed building rate to recognize that the actual value exposed to loss is approximately one-half of the completed value. The advantage of this form is that the project is fully covered from the outset without requiring any further reporting during construction. Back to top

Contractors Erection Policy
This policy provides all-risks course of construction protection for structures under construction including any materials or supplies that are to be permanently installed within such structures. It also provides third party liability coverage within its form. Back to top

Design E & O
Standard Builders Risk/Installation policies exclude coverage for loss resulting from design error. This endorsement/provision is used to restrict or eliminate the application of this total exclusion as specified in the modified wording. Back to top

Difference In Conditions (DIC)
This policy is used to provide protection for many exclusions, coverage gaps or uninsured perils (such as flood and earthquake) not covered by your basic Builders Risk form. Back to top

Earthquake Coverage
This coverage is used to provide protection for loss due to earth movement including earthquake shocks and volcanic eruption. Back to top

Efficacy Coverage
This insurance is used to protect a contractor against claims arising from the late completion of a project, or failure of the project from performing up to intended levels of output or functions. Back to top

Electrical Equipment Breakdown Exclusion Modified
This endorsement is used to modify the standard exclusion for loss due to electrical apparatus breakdown so that it does not apply to subsequent loss or damage. This is important since many forms either do not provide this extended protection at all or limit its use to only subsequent losses caused by fire or explosion. Back to top

Erection All Risk Policy
This Builders Risk policy provides coverage for equipment that is to be installed, and not for the structure itself. For example, this policy is used when a contractor installs manufacturing machinery in a building which is under construction. Back to top

Extended Interest Protection
This endorsement can be used to extend your coverage on completed projects for the additional time period specified in the form. This can be important for those projects where you retain a financial interest, even after the project has been turned over to an owner. Back to top

Faulty Workmanship
Standard Builders Risk/Installation policies contain an exclusion relating to loss resulting from faulty workmanship, material or design. This endorsement/provision is used to limit or delete this exclusion as specified in the modified wording. Back to top

Flood Coverage
This coverage is used to provide protection against loss due to water damage caused by water backup, or water below the surface, which exerts pressure or flow through sidewalks, foundations, walls, etc. Back to top

Force Majeure Coverage
This coverage is used to provide protection for several exposures as outlined in the force majeure obligations of the contract between an owner and contractor of a project. It pays for the cost of delay or shutdown in construction caused by a covered occurrence beyond the control of the owner or contractor. Back to top

Foundations Coverage
The Builders Risk policy can be written to cover loss resulting from damage to foundations, flooring and pilings. It is important to include this protection since many Builders Risk policies exclude coverage for these items. Back to top

Foundations Including Ground
The Builders Risk policy can be extended to include coverage for foundations, excavations, underground pipes, piers or pilings including the ground on which the structure rests. This is important since claims can occur in construction projects that require remedial work to a structure's bedrock or soil. Back to top

Infidelity Exclusion Modified
This endorsement is used to modify the standard exclusion eliminating coverage for loss due to acts of dishonesty so that it will not apply to anyone else's dishonest acts except those of the contractor or his employees. This is important since most standard policies exclude any acts whether admitted by employees or not. Back to top

Installation Floater (CP1115)
This policy is used to cover materials and supplies during transit to, or installation at, a covered job site. Coverage ends when the contractor's or purchaser's interest ceases, whichever occurs first. Back to top

Inventory Shortage Included
This endorsement is used to modify the standard exclusion of loss caused by unexplained or mysterious disappearance or inventory shortage so that it applies only to such disappearance if revealed by inventory shortage alone. This is important since, if other evidence of disappearance can be presented, such policy exclusions will not apply. Back to top

Lawns, Trees and Shrubs Coverage
This coverage is used to extend your policy to cover lawns, trees, shrubs or plants as specified in the form. Back to top

Loss Valuation Method Reviewed
Methods of determining loss can vary among Builders Risk/Installation forms. The preferred wording covers all costs needed to repair or replace your structure or work (including overhead and profits) and will pay based on the values figured at the time of rebuilding or repairing, not at the time of loss. Back to top

Maintenance Coverage
This endorsement can extend the Builders Risk policy to include coverage for activities that occur after a building is completed including cleanup and maintenance operations. This is important since coverage normally ceases when a building is completed. Back to top

Mechanical Equipment Breakdown Exclusion Modified
If added, this endorsement limits the exclusion for loss due to mechanical breakdown so that it does not apply to subsequent loss or damage. This is important since many forms either do not provide this extended protection or limit its use to only subsequent losses that are caused by fire or explosion. Back to top

Named Perils Coverage
This coverage is used to protect your covered property against direct loss arising from one of the perils listed in your policy. To recover, you must prove that the loss was caused by one of these listed perils. Back to top

Occupancy Clause Required
The Builders Risk policy contains an occupancy clause stating that your building under construction may not be occupied whole or in part or put to its intended use without the consent of your insurer. A review of this exposure should take place prior to the completion of your project to ascertain whether an endorsement granting permission is appropriate. Back to top

Plans, Specs or Blueprints
This endorsement is used to extend the Builders Risk/Installation policy to cover damage to valuable papers including building specifications, blueprints, etc. The amount of protection is listed as a sublimit on the declaration page of this policy. Back to top

Property In Temporary Storage
This endorsement is used to extend the policy to cover property temporarily stored at separate locations. Back to top

Property In Transit
This coverage applies to your property, including building materials to be installed on a construction site, while in transit to such sites. Back to top

Property of Others
This endorsement is used to extend coverage to insure property of others which is similar to that insured under your policy.Back to top

Renovations or Repairs (CP1113)
This endorsement is used to modify the Builders Risk policy to allow construction work on completed or occupied buildings. Coverage is included for the building's improvements, alterations or repairs and excludes the value of the existing structure. Back to top

Reporting E & O
This endorsement is used to modify your Reporting Form policy by eliminating penalties for failing to report values on projects by the required date if such failure is due to unintentional error or inadvertent omission in either values or amounts, as long as notice is given to the company as soon as said omission or error becomes known to you. This is important since these types of policies have stringent reporting procedures that, unless adhered to, could result in claims settlement problems. Back to top

Reporting Form (CP1105)
This Builders Risk form provides coverage whereby the increasing values of a specific project are reported on a monthly basis to the company. An additional premium is charged for this reported increase over the previous month's value. This type of policy is most important where large projects have completed values that may be hard to estimate during the inception of a project. Back to top

Settling, Cracking or Shrinking
The Builders Risk policy can be written to include coverage for loss resulting from settling, cracking, shrinking or expansion of foundation walls, floors or other parts of the structure. This is important since many Builders Risk policies exclude losses of this type. Back to top

Signs or Antennas Coverage
This endorsement is used to broaden the definition of covered property to include protection for these property items. Back to top

Soft Costs Coverage
This coverage is used to reimburse you for additional expenses incurred and/or loss of revenue resulting from the suspension or delay of the completion of your project when a covered peril damages the property. Back to top

Special Perils Coverage
This coverage will protect covered property against direct loss arising from any cause not specifically excluded. The advantage of form is that your insurance company must prove that a loss is specifically excluded in order to deny coverage under the policy. Back to top

Temporary Structures & Supplies
This endorsement is used to broaden the Builders Risk policy to include protection for temporary structures, equipment and supplies used in the construction of your insured building. Back to top

Testing Coverage
This coverage is used to extend the policy to cover loss that occurs as a result of testing. This is important since the omission of this coverage could preclude recovery from a variety of losses that might occur during construction. Back to top

Water Damage Including Flood
The coverage is used to provide protection against loss due to damage by flood as specified in the form. Back to top